• Farm Insurance

Homeowner’s Insurance vs. Farm Homeowner’s Insurance


t A10K Inc., we specialize in writing commercial and agricultural risks of all sizes. We believe in providing you with a wide range of options to ensure that you receive optimal coverage specifically designed for your own needs. In order to prevent running the risk of buying coverage that you do not need, it is important to develop a solid understanding of the standard coverages we offer.

A few of the standard coverages that insurers typically offer include homeowner’s insurance, commercial property insurance and farm homeowner’s insurance. In order to understand the primary purpose of farm homeowner’s coverage, let us first explain what commercial property insurance and homeowner’s insurance covers.

Commercial Property Insurance vs. Homeowner’s Insurance
Commercial property insurance not only protects the buildings in which you operate, but also your property inside and outside the building. This may include equipment, furniture, inventory, electronics, or almost anything else of value. Retail businesses, manufacturers, professional service providers, not-for-profit organizations, contractors, and retailers usually invest in commercial property insurance for the purpose of protecting their property, as well as maintaining business continuity. Liability insurance is separate, but strongly recommended coverage.

On the other hand, homeowner insurance policies are designed to protect property owners of residential dwellings, coverage for household contents, additional living expenses and detached structures on the premises. Similar to a commercial policy, homeowner’s insurance also protects personal property from perils such as theft, fire or natural disasters. However, homeowner’s insurance also covers against claims for personal and premises liability. For example, if an individual slips and falls on your driveway, you will be covered. A key difference between your commercial policy and homeowner’s policy is that homeowner’s insurance only covers the house and buildings on the premises, and does not account for commercial operations or lost business income. In the event that you are running a business at home, such as a hobby farm, and a customer makes a legal claim against you, you will not be covered under your homeowner’s insurance. This is where farm homeowner’s coverage comes in.

What is Farm Homeowner’s Insurance?
Farm homeowner’s insurance falls right in between commercial property insurance and homeowner’s insurance. It is similar to homeowner’s insurance in the sense that it covers damage to the farmer’s dwelling(s) and property inside or outside the buildings. Better yet, farm homeowner’s insurance also includes liability insurance pertaining to the farmer’s commercial operations. Therefore, farmers can invest in this package to insure against potential property losses, and also to protect themselves from legal claims made against their business any legal claims against their business.

A standard farm homeowner’s insurance policy would normally offer coverage for:
 Dwellings
 Farm Buildings and Contents
 Farm Machinery & Equipment (tractors, pivots, balers, combines, etc.)
 Livestock
 Farm Liability
 Grain, Fertilizer, and Produce
 Ingestion loss

Despite these common coverages, each farm is unique in terms of their coverage requirements. To illustrate, dairy farmers rely on certain equipment to keep their milk products safe from spoilage or contamination. Therefore, dairy farmers should opt for milk products and supplies coverage, which would compensate for spoiled milk. Alternatively, a farmer who runs a hobby farm would consider a range of coverages for their small farm. Although these farms do not generate much income, they would greatly benefit from a combination of livestock, equipment and/or produce coverage. Simply put, you want to ensure that selected coverage fits all aspects and/or elements of your farm. At A10K, we can help you select an insurance product that is tailored to your needs.